GeoPark begins tender offer, consent bid for 6½% notes due 2024

By Rebecca Melvin

Concord, N.H., April 6 – GeoPark Ltd. is tendering for up to $255 million of its 6½% senior notes due 2024 (Cusip Nos. 37255BAA7, G38327AA3) and soliciting consents for proposed amendments to the indenture. There is $425 million principal amount of the notes outstanding.

The total purchase price will be $1,050 for each $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on April 19.

The amount includes an early tender premium of $50.00 per $1,000 principal amount of which $2 represents a consent payment for each bond.

Holders who tender after the early deadline will receive par for the notes.

The issuer also will pay accrued interest up to but excluding the payment date.

The tender offer will end at 11:59 p.m. ET on May 3.

GeoPark is also seeking consents to align the bond more closely to its 5½% notes due 2027. The changes will allow the company to more efficiently operate its business, GeoPark said in a press release.

In particular, the consent would shorten the required notice for redemption, adjust the interest coverage ratio and the net leverage ratio, change the measurement period for evaluating restricted payments, increase the cross-default threshold, increase the general basket of permitted liens, and amend, supplement or change certain other defined terms.

Any noteholder who tenders notes prior to the early tender deadline will be deemed to have delivered a consent. Holders may not deliver their consent to the proposed amendments without tendering their notes.

The company expects to make payment for the notes that were tendered early on April 26 with final settlement on May 6.

The tender offer is subject to a financing condition.

BofA Securities Inc. (888 292-0070 or 646 855-8998), Credit Suisse Securities (USA) LLC (212 325-7823 or 800 820-1653) and J.P. Morgan Securities LLC (866 834-2045) are the dealer managers. D. F. King & Co., Inc. (212 269-5550, 866 796-6867 or gprk@dfking.com) is the information and tender agent.

GeoPark is an oil and gas explorer, operator and consolidator based in Santiago, Chile.

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